Econometrica Vol. 63 No. 2 1995
Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues
Abstract
This paper models and estimates congestion prices and capacity for large hub airports with stochastic queues, time-varying traffic rates, and endogenous intertemporal adjustment of traffic in response to queuing delay and fees. Relative costs of queuing and schedule delays are estimated using data from Minneapolis-St. Paul. Simulations calculate equilibrium traffic patterns, queuing delays, schedule delays, congestion fees, airport revenues, airport capacity, and efficiency gains. The paper also investigates whether a dominant airline internalizes delays its aircraft impose. It tests game-theoretic specifications with atomistic, Nash-dominant, Stackelberg-dominant, and collusive-airline traffic.
- DOI
- 10.2307/2951629
- Volume
- 63
- Issue
- 2
- Pages
- 327
- Sources
- bibtex:phds-export.bib openalex crossref